US 10th Dist. Energy Firms Less Optimistic about Future Drilling
The future of drilling activity in the U.S. Tenth District doesn’t seem to have been met with some caution, as results from the Kansas City Fed fourth quarter energy survey indicates.
The survey, which questions energy firms in western Missouri, Nebraska, Kansas, Oklahoma, Wyoming, Colorado and northern New Mexico, found that the drilling and business activity index fell from 45 to -13 in 4Q 2018 – the first quarterly decline in almost three years.
Year-over-year indexes declined but remained positive. The drilling and business activity index decreased from 57 to 17 year-over-year. This is the lowest level in two years.
Future expectations saw the drilling and business activity index drop from 57 to -19, the first negative posting since early 2016. Future total revenues, CAPEX and total profits indexes had considerable decreases.
And while most of the employment-rated indexes declined as well, they remained above 0, which is an indication of expansion, albeit a slower pace.
The survey also asked firms about their plans for capital spending in 2019. Forty percent of respondents said they expect to spend less in 2019 than in 2018.
Earlier this week, Oklahoma City-based Chesapeake Energy said it would be reducing its CAPEX in 2019, cutting its rig count by 20 percent.
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
- ExxonMobil Racks Up Discoveries in Guyana Block Eyed by Chevron
- Oil Market Sentiment Has Improved Significantly
- EU, US Eye Collaboration on Nuclear Materials
- USA Driving Activity to Increase to All-Time Highs
- EU Electricity Export to Ukraine Up 94 Percent in Two Years
- China Coal Output Falls for First Time since Government Ordered More
- TC Energy to Sell Prince Rupert Gas Pipeline Project to First Nation
- BP Pulse Buys One of Europe's Largest Truck Stops
- UK CCUS Plans Outdated: Think Tank
- I Squared Eyes Full Ownership of Europe Gas Storage Firm
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Major Oilfield Discovery
- EIA Drops 2024 Henry Hub Gas Price Forecast
- EIA and Standard Chartered Offer Up Latest Oil Price Predictions
- Red Sea Region Sees Another Watershed Incident
- Chevron Oil Project in Kazakhstan to Cost $48.5B
- OPEC Voices Encouragement after IEA Affirms Support for Oil Security
- Biden Govt Bares Strategy for Freight Charging, Hydrogen Fueling Infra
- Ukraine Hits Third Russian Refinery In Escalating Drone Strikes
- Rystad Looks at the Buzz Around White Hydrogen
- VIDEO: Missile Attack Kills Crew Transiting Gulf of Aden
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Major Oilfield Discovery
- What Is the Biggest Risk to Offshore Oil and Gas Personnel in 2024?
- Is Peak Oil Demand Close?
- Vessel Sinks in Red Sea After Missile Strike
- JP Morgan, Standard Chartered Reveal Latest Oil Price Forecasts
- Exxon Rights in Stabroek Do Not Apply to Hess Merger with Chevron: Hess
- Rystad Forecasts Net Production of Top Permian Producers in 2024
- Analysts Reveal Latest Oil Price Outlook Following OPEC+ Cut Extension